How to self manage the property

Discussion in 'Property Management' started by sakarai, 20th Apr, 2015.

  1. sakarai

    sakarai Member

    Joined:
    8th Feb, 2015
    Messages:
    3
    Location:
    VIC
    Hi Everyone,

    I am new to this forum. I have recently purchased my 1st investment property and I have also found a great tenant to rent it out shortly. I am thinking of self managing my property and so I would like to know what are the things that I need to self manage the property.

    So could you please let me know the things that i need like rental agreement form, bond authority and any other things that are necessary and where to get them.

    Any help on this is greatly appreciated.

    Thanks.

    Regards,
    San
     
  2. HomeBuyAU

    HomeBuyAU *

    Joined:
    28th Apr, 2009
    Messages:
    786
    Location:
    Living in NSW
    A 2nd phone number ;)
     
  3. Rixter

    Rixter $uper Investor (Retired)

    Joined:
    15th Mar, 2001
    Messages:
    9,335
    Media:
    12
    Location:
    Highton Vic.
    Hi San, welcome to SS.

    This being your first IP I would strongly suggest you put your IP in the hands of a professional PM. Self managing is not something you should attempt if you're asking what to do yourself.

    Learn to walk before you run. Educate yourself first and then later on when you are more knowledgeable re-access. Self managing is quite legally involved and if you dont have it to the letter of law will come back to bite you BIG time.

    For the sake of 8% there abouts and tax deductible it will be money well spent.

    I hope this provides some food for thought.
     
  4. thatbum

    thatbum law talking guy

    Joined:
    25th Feb, 2012
    Messages:
    1,556
    Location:
    Perth
    +1. Definitely agree with is. Self managing is not as easy as most people think.

    Finding the right forms online is just the beginning. What happens when the tenants fall behind in rent? Are you confident of knowing the right processes to follow in the more difficult situations?
     
  5. lazibones

    lazibones Member

    Joined:
    11th Apr, 2015
    Messages:
    49
    Location:
    Vic
    San what was your strategy when you bought your property? Who were you targeting as tenants? Is the property with in 2 hours travel? I find it much easier to manage properties myself than manage the lazy incompetent managers, with their demanding, whining, unappreciative. entitled, tenants and their illegal scratching, carpet staining animals they put in. MY best tenants have been appreciative ones who PMs reject I found I can also get much higher rents than what agents say I can get, I find they just put tenants in they already have already managed, know and are friendly with to make there job easy. They even tell me they don't have to advertise as they all ready know who is looking. If you manage yourself you soon develop networks, I was surprised to find I quite enjoy it. I may have been charmed I have only had one small problem with one self managed tenant but his intial lease was only 10 weeks so I simply threw him out. With a PM probably would have been stuck with him for 12 months. Some of my PM managed properties where being subleased and it was the tenant making all the profit out of the property.
     
  6. Jamie M

    Jamie M Mortgage Broker - Oz Wide

    Joined:
    20th Jul, 2009
    Messages:
    4,085
    Location:
    Canberra and Sydney
    Agreed.

    You really need to be clued up on tenancy legislation and processes in order to tackle self management. You also need to be very organised.

    Personally - I'd find a good PM to sort it out for you. Even if it's a friend/relative you're renting too - it's best to keep some distance IMO.

    Cheers

    Jamie
     
  7. S.T

    S.T Member

    Joined:
    27th Jun, 2011
    Messages:
    1,183
    Media:
    4
    Location:
    Melbourne
  8. sakarai

    sakarai Member

    Joined:
    8th Feb, 2015
    Messages:
    3
    Location:
    VIC
    Thanks for all your feedback.

    The main reason I thought of managing on my own is because the PM's in that area are very lazy. I approached couple of the real estate agents and are not showing much interest. They are mainly focused on selling the properties than managing it. Hence I took the matters in my own hands and found one of my friend who wanted the house for long term. Also my PPOR is 4 km from my investment property.

    And for managing the transactions my partner is at home and so she can take care of it.
     
  9. thatbum

    thatbum law talking guy

    Joined:
    25th Feb, 2012
    Messages:
    1,556
    Location:
    Perth
    Yes but are you or your partner prepared to do a lot of reading and learning about the processes when something goes wrong?

    The easy part of property management is when everything is going according to plan - its the difficult parts where a professional or experienced property manager is what will save you money.

    I still think its probably easier for you overall to keep looking for a good PM.
     
  10. Crystalclear

    Crystalclear Member

    Joined:
    18th Jul, 2014
    Messages:
    16
    Location:
    victoria
    Agreed. Unless you are prepared to kill a few trees a year with paperwork, legislation (all states are different), walk the line of someone you know in the property and maybe have to take them to task on a tenancy level think about it seriously.

    If you decide to self manage start reading the links that have been provided, remember to lodge bond with proper authority, correct clauses in lease, routine inspections, full ingoing condition report with photos, not to mention the cross checking of tenants details as all is not necessarily what it seems to be